China, gold, and the “End of America”: This announcement could rock the world four months from today
This is information from The Daily Crux. It is very interesting food for thought.
What do you think?
“We all know it’s going to happen…
China’s currency, the yuan, will soon be backed by gold.
And when that happens, it will likely push the U.S. dollar off the top of the heap.
Europe and China already have a $57 billion deal set up to do business together without U.S. dollars. That’s the largest deal of its kind for China. And if China plans to back the yuan with gold, it certainly won’t be the last.
The trouble is, China’s official gold holding was just 1,054 metric tonnes in 2009 (about 33.9 million ounces). That’s nowhere near enough gold to back its currency. The country spent the last five years importing literal tonnes of gold. It imported about 645 tonnes from Hong Kong alone.
China’s domestic gold miners have produced 3,072 tonnes since 2004. With its imports, that means the country has nearly 4,000 tonnes of gold for sure. But it’s likely much higher…
According to multinational information firm Thomson Reuters, China is the buyer for all the gold sold from giant exchange-traded funds (ETFs). In 2013, physical gold ETFs sold nearly 800 tonnes of gold in the form of 400-ounce bars. Swiss refiner Argor-Heraeus converts these 400-ounce ETF bars into 1-kilogram bars. And about 70% of those bars went to China.
This is a huge story. The question is, when will China drop the curtain and show the world how much gold it’s actually acquired?
The rumor is April 2014… five years after its last official statement about its gold holdings.
If that’s the case, we could see the world’s current financial powers turned on
their head in just four months.
We all know it’s going to happen…
China’s currency, the yuan, will soon be backed by gold.
And when that happens, it will likely push the U.S. dollar off the top of the heap.
Europe and China already have a $57 billion deal set up to do business together without U.S. dollars. That’s the largest deal of its kind for China. And if China plans to back the yuan with gold, it certainly won’t be the last.
The trouble is, China’s official gold holding was just 1,054 metric tonnes in 2009 (about 33.9 million ounces). That’s nowhere near enough gold to back its currency. The country spent the last five years importing literal tonnes of gold. It imported about 645 tonnes from Hong Kong alone.
China’s domestic gold miners have produced 3,072 tonnes since 2004. With its imports, that means the country has nearly 4,000 tonnes of gold for sure. But it’s likely much higher…
According to multinational information firm Thomson Reuters, China is the buyer for all the gold sold from giant exchange-traded funds (ETFs). In 2013, physical gold ETFs sold nearly 800 tonnes of gold in the form of 400-ounce bars. Swiss refiner Argor-Heraeus converts these 400-ounce ETF bars into 1-kilogram bars. And about 70% of those bars went to China.
This is a huge story. The question is, when will China drop the curtain and show the world how much gold it’s actually acquired?
The rumor is April 2014… five years after its last official statement about its gold holdings.
If that’s the case, we could see the world’s current financial powers turned on their head in just four months.”
I think you’re right when you said that’s the bottom
Currency, in my opinion, is the issue here!
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No…they wont…they will keep buying and buying and buying…….billions of people in Asia are “coming on line”…..they demand REAL money and not political non-sense. Unfortunately, the West will figure it out too late…..:(
My goodness, when in the hell are people going to wise up and start using the brain that god gave them.
How many times do you need to fleeced and lied to before you grow a brain.
The average person will believe anything their told. This is just more unmitigated scare mongering that plays out everyday in this sick balancing act called life.
This is nothing more than complete unfounded conjecture on the part of some goofy reporter writing some wild-eyed article with a tone of fact, when its nothing more than an unsubstantiated opinion.
The abilities of the so called monied interests to continue to effortlessly separate the average lazy investor from his/her money is astonishing.
The dollar has its issues and I do not like the FED RES, but the dollar is not going anywhere for years and years to come. News flash, the Yuan will never be a world reserve currency. It may hold a place in a basket of currencies but that will be it, gold backed or not.
Never say never
Never said it was fact, V.
You gotta admit that in this crazy world anything is possible.
Vortex,
I bet you are A REALLY well read person. You have a fantastic writing style and you are very, very well educated. I can tell by your writing dynamics. However, that is far as my compliments are going to go. The US dollar will LOSE its hegemony as the LONE reserve currency king within 3 to 5 years maybe sooner. I DID NOT SAY THAT THE YUAN WILL BE THE NEXT RESERVE CURRECT. I am saying that the US DOLLAR WILL LOSE ITS CURRENCY STATUS…TO WHAT? AH, NOW THAT IS THE GOLDEN QUESTION???
Why would you want to use the currency of a country that builds empty cities and prints like crazy and is even less truthful about their financial standing than we are?
There are dollars everywhere. I don’t think the dollar great, but its still much better than Chinese Yuan.
How do you think the Chinese people will afford a house in those cities?
When gold goes up 10 fold that’s how.
BINGO..TOM….BINGO
It is an outside shot though. Don’t you think, Gary?
It is all a chess game man!
The real problem is we are moving to a society of entitlements, Rome had the same situation where you were either a slave or the hierarchy, just try to look after your family as the middle class may never return, yes it’s a shame. DT
DT, yes! The middle class is done, toast, its over.
This is what humanity has been reduced to but only the few will acknowledge it.
I guess we are a part of that minority, V!
The reason for most slavery ,,,,debt…………
reason for most hierarchy,,,power thur war, ………..
reason for the lost of hierarchy………over extending ,,,,debt.. loss in war….
Moving? You’re there now
Gary,
You appear to be a smart person that think for yourself and you already answered the questions.
The answer is you wouldn’t.
Most of this type of stuff comes from people who are trying to sell you something. It can come in physical form or it can come in the form of fear. But it comes with a big pretty bow wrapped in a conflict of interest.
V
Agreed,V!
Interesting chart and article regarding the history of reserve currencies…
nothing lasts forever:
http://www.zerohedge.com/news/2014-01-06/slow-inevitable-demise-us-dollar
Great article. Its about time we start a new movement to instill a new value system in our children where ‘Instant Gratification’ is not a good thing.
Hear, HEAR Rubina…….HEAR HEAR!!
This article assumes China will survive until then.
Th hyperbole in this article leaves much to one’s imagination. How about some sober reasoning for a change.
Gold bugs and gold pumpers told you to buy at 1900 too…..
Gold bugs were right….can’t predict manipulation
Fundementals always catch up though…
External debt per person in the U.S.: $52,000
External debt per person in China: $400
Public debt as % of GDP in China: 31%
Public debt as % of GDP in the U.S.: 72%
Gross government debt in China: 23% of GDP
Gross government debt in U.S.A.: 107% of GDP
Now which nation is less likely to “survive?”
Tom “raises hand”
🙂
In one hour this great wealth has been brought to ruin. Revelation 18-19
Wake me up whtn it happens!
Gold’s at $1239.90/1240.90 right now on Kitco. That’s the bottom line.
One problem with this: if China now has enought gold, they will STOP BUYING IT!